Which one of the following statements is true if a companys collection period for accounts receivable is

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Which one of the following statements is true if a company’s collection period for accounts receivable is unacceptably long?

a. The company may need to borrow to acquire operating cash.

b. The company may offer trade discounts to lengthen the collection period.

c. Cash flows from operations may be higher than expected for the company’s sales.

d. The company should expand operations with its excess cash.

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Cornerstones Of Financial Accounting Current Trends Update

ISBN: 9781111527952

1st Edition

Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen

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